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The Defined Benefit Plan is a contributory retirement plan that pays a
monthly benefit at retirement based on your age, years of creditable service
and your average final compensation while you are employed with the City of
Richmond. The contribution rate for general employees is 1 percent of creditable compensation
each pay period.
Benefits of the Defined Benefit Plan are based on a formula that includes
your average final compensation, years of service and a multiplier. The average
final compensation is the average annual creditable compensation of a member
during the member's thirty-six (36) consecutive months of creditable service in
which such compensation was at its greatest amount. The formula for general
employees has a multiplier of 1.75 percent and the formula’s maximum number of
years of service is thirty-five (35).
If an Early Service Reduction (ESR) factor is applicable, the ESR is 5
percent per year up to your normal retirement age of 65 or years of service for
unreduced retirement benefits (30 years for general employees), whichever is
smaller.
To get an estimate of what your retirement benefit will be use the
Online Benefit Calculator.
Richmond contributes an amount each year that varies according to calculations by the
System's actuary. The City's contributions are invested by outside investment firms
with the primary objective being to ensure the security, stability and
continued growth of assets for members' future benefits. The City Code requires
that the plan be maintained on an actuarially sound basis.
Defined Benefit-Enhanced Option
The Enhanced Defined Benefit Option, like the Defined Benefit Plan, pays a
monthly benefit at retirement based on your age, years of creditable service
and your average final compensation while you are employed with the City.
However, you are required to make additional contributions of 3.57 percent of
your creditable compensation each pay period until you terminate employment or
retire in order to receive the benefit of the enhanced option.
The enhanced option provides for an increased monthly benefit based on a
formula that has a multiplier of 2 percent. Again, the benefit level is set by formula,
regardless of the retirement fund's investment performance.
Use the
Online Benefit Calculator to estimate your retirement benefit as a participant of the Defined-Enhanced Option.
If you elected the enhanced option, you must make the required contributions
until you retire or terminate employment with the City. The 3.57 percent
contribution must be made for a minimum of three years and will increase each
time you receive a pay increase.
If, however, you elected the enhanced option and
do not become vested or make the required minimum contributions, your
contributions will be refunded to you by the System
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